Unemployment

Structural

________ (technology): An assembly- line worker gets laid off; the job is now being done by a machine.

Frictional

________ (seasonal): Migrant agricultural workers just finished harvesting oranges in Florida.

Cyclical

________ (recession): Many bank employees were laid off due to the financial crash, which caused the recession.

Underemployment

________: working part time but you want to be working full time; doing a job youre overqualified for.

U rate

________: percent of labor force who are not working but actively looking for work- they want a job.

Structural Unemployment

________: replaced by technology; has skills /experience but no jobs to match this (& vice versa); lose job and need to retain; worthless degree " (basket- weaving); "if demand shifts.

Cyclical

________ (recession): At the Saturn factory in Spring Hill, workers are laid off when the plant closes because the cars arent selling during the recession.

Structural

________ (technology): A skilled glass blower becomes unemployed when a new machine does her job faster.

Frictional

________ (quit): You refuse to work for minimum wage and keep looking for a higher- paying job.

Structural

________ (no skill): A high school graduate doesnt get any jobs he applied for because he lacks the skills.

Frictional

________ (seasonal): youre a beach lifeguard in California and since no one goes to the beach in the winter, you are unemployed until March.

Cyclical

________ (depression): In the 1930s, thousands of people lost their jobs because of declining consumer demand during the Great Depression.

Frictional

________ (firm) or Structural (demand shifts): Chipotle has an outbreak of E.coli, so declining sales means a cashier is laid off.

Structural

________ (retrain): More and more people are buying electric vehicles, so engineers who have always designed internal- combustion engines are laid off and must be retrained for new engines.

Labor Force Participation Rate

population 100, Labor force 70= 70% LFPR

Who is in the Labor Force

16 years and up; non-military; working (employed); anyone looking for work(unemployed)

Who is NOT in the labor force?

stay-at homes; children (under 16); full time students (college); institutionalized individuals; incarcerated; military; anyone NOT looking for work

U rate

percent of labor force who are not working but actively looking for work--they want a job

Calculating U rate

number unemployed over number of eligible LF

Unemployment Insurance

state runs unemployment benefits--anyone can get it if you lose your job through NO FAULT of your own **unemployment checks**

Unemployment benefits

we all pay into the system; limited; based on individual; % of your salary

Frictional Unemployment

graduates (H.S. and college); quit; fired; seasonal workers; laid off due to firm having trouble

Structural Unemployment

replaced by technology; has skills/experience but no jobs to match this (& vice versa); lose job and need to retain; worthless degree ("basket-weaving"); if demand shifts

Cyclical Unemployment

result of a recession or depression (COVID)-2023

National unemployment rate

3.7%

TN unemployment rate

3.2%

Normal Unemployment rate

4-6%

Underemployment

working part time but you want to be working full time; doing a job youre overqualified for

Discouraged workers

worker who is looking for a job--they want a job--but they can’t find one to match their qualifications and they give up (not counted in LF)

Frictional (seasonal)

you're a beach lifeguard in California and since no one goes to the beach in the winter, you are unemployed until March

Frictional (quit)

A literary editor quits her job in New York in order to look for a job in Seattle

Frictional (graduate)

unemployed college graduate looking for his first job

Structural (technology)

An assembly-line worker gets laid off; the job is now being done by a machine

Frictional (seasonal)

Migrant agricultural workers just finished harvesting oranges in Florida

Frictional (firm) or Structural (demand shifts)

Chipotle has an outbreak of E.coli, so declining sales means a cashier is laid off

Frictional (quit)

You refuse to work for minimum wage and keep looking for a higher-paying job

Structural (no skill)

A high school graduate doesnt get any jobs he applied for because he lacks the skills

Cyclical (recession)

At the Saturn factory in Spring Hill, workers are laid off when the plant closes because the cars arent selling during the recession

Structural (technology)

A skilled glass blower becomes unemployed when a new machine does her job faster

Discouraged

You were laid off and have been unsuccessfully looking for work for so long that you finally give up seeking a job and start doing volunteer work instead

Cyclical (depression)

In the 1930s, thousands of people lost their jobs because of declining consumer demand during the Great Depression

Underemployed

A college graduate works at Sonic

Not in LF (under 16)

A 15-year old starts looking for babysitting jobs because she is saving for a car

Frictional (quit)

A financial advisor is unhappy with her employer, so she quits and is looking for a better job

Structural (retrain)

A programmer loses her job because she couldnt learn the newest language

Structural (retrain)

More and more people are buying electric vehicles, so engineers who have always designed internal-combustion engines are laid off and must be retrained for new engines

Structural (technology)

Cashiers at Panera are laid off because of the new iPad self-ordering stations

Cyclical (recession)

Many bank employees were laid off due to the financial crash, which caused the recession

Structural (laid off)

Because of Airbnb, people dont buy "time-share" properties anymore, so time-share salespeople are laid off

Underemployed

A bank teller would like to work full time, but his manager only gives him 25 hours a week